ITC Accounting and Tax Consultancy

Supporting documents for Cases related to Waiver of Administrative Penalties Cabinet Decision No. 105 of 2021

Cases for Waiver of Administrative Penalties

Supporting documents

Death of the registered natural person or the owner of a sole establishment, if the death was a direct cause for failing to fulfil the tax obligation.

•Official death certificate issued by competent government authorities.

•Death certificates issued from foreign government authorities for UAE nationals and expatriates to be attested as per attestation protocol followed in the UAE.

•Court’s letter of appointment of guardian and limitation of succession certificate.

•Power of attorney from heirs appointing an agent – if applicable.

•Proof of kinship of the deceased with the authorized signatory or legal representative if the deceased was not the authorized signatory.

•Letter from banks determining when bank account freeze was uplifted and list of current bank accounts.

•Proof that no other transactions were conducted during the period i.e. bank account statements, court the decision, etc

Illness of the registered natural person or the owner of a sole establishment, if the illness prevented the person from fulfilling the tax obligation on time

•Medical reports proving illness or sudden contagious and critical illness that has refrained taxpayer from adherence to comply with tax obligations.

•In the event of treatment outside the UAE, affidavits from competent health authorities in the UAE or embassies or consulates proving the person was abroad for medical treatments.

•Proof of how the illness has contributed to non- compliance with tax obligations.

•Proof of date of start and end of the illness that has contributed to non-compliance with tax obligations.

•Declaration from the applicant that no agent was available to fulfill the obligations on applicant.

•Proof of halt of operations during the period of illness.

Death, illness, or resignation of a key employee of a registered establishment, provided that it is proven that this was a direct cause for not fulfilling the tax obligation on time

•Proof of non-availability of key employee and the tax payer’s dependency on the key employee for compliance with tax obligation associated with the administrative penalties.

•Job description of the key employee.

• Reasons why the taxpayer could not anticipate in a reasonable manner for such probability and justification of non-availability of competent successor of key employee.

•Date of resignation or death of key employee.

•Medical reports proving illness of key employee with dates of start and end of illness.

•Report of attendance and annual leaves of key employee for a period of six months prior to date on the administrative penalty.

•Official reports from government authorities in the UAE reporting absconding key employee or frauds cases conducted by key man.

Restrictions, or precautionary or preventive procedures imposed by government authorities in the State, if these restrictions or procedures were a direct cause for not fulfilling the tax obligation.

•Decision or official document issued by competent government authority stating curfew or refraining orders or medical isolation that contributed to a person being unable to reach place of work to comply with tax obligations.

•Any circumstantial evidence that confirm a person not being able to access place of work i.e. medical isolation, air ticket for individuals coming from abroad or medical report confirming illness. In the event the person has been unable to travel to the UAE due to travel ban documentary evidence to be submitted proving a person was out of country.

•Proof that key person or key employees were not able to access files or tools or information required to comply with tax obligations due to forced measures.

•In the event forced measures were imposed on key employees, the following must be submitted:

•Proof of non-availability of key employees and dependence of taxpayer on key employee to comply with tax obligations.

•Job description of key employee.

•Reasons why the taxpayer could not anticipate in a reasonable manner for such probability and justification of non-availability of competent successor of key employee supported by organization chart and employment records of all employees.

•Proof of persons or place of work or documents and files were within impacted area of forced measures.

•Proof that taxpayer is not able to comply with tax obligations post announcement of forced measures for a period over two weeks.

A general malfunction in the Authority’s systems, payment gateways or used telecommunication services, where that was a direct cause for not fulfilling the tax obligations of a Category of Persons on time.

•Details of the technical error that a taxpayer is facing in Federal Tax Authority’s systems along with documentary evidence (i.e. screenshots from the system reflecting the error).

•  Proof of date and time of technical issues and proof of sequential order along with tax obligations due dates and non-resolution of the technical error before end of due dates.

•Proof that taxpayer has attempted to comply repeatedly and the technical error was not momentarily.

•In the event telecommunication services failures, proof of communication from telecommunication service provider detailing cause of the issue, date and time and proof that the error could not be anticipated or avoided from telecommunication service provider and non- availability of alternate telecommunication means such as connection via cellular data plan on mobile phones.

Execution of a custodial sentence on the registered person or the owner of a sole establishment.

•Records from competent governmental authorities specifying details of custodial sentence execution.

•Proof of start date and end date of custodial sentence execution.

•Proof that taxpayer has stopped from executing business activities during custodial sentence execution period.

•Declaration from taxpayer that no agent was appointed to fulfil the obligations on the entity or individual.

The person carries out the tax obligations and settles all due tax amounts in accordance with the Tax Law through an account of another person registered for tax purposes with the Authority.

•Explaining of the relationship of both taxpayers and how the violation or error took places.

•Proof that Payment has been made by another taxpayer.

•Affidavit from the other taxpayer confirming claims of the taxpayer and confirming payments made to FTA do not pertain to them.

•Proof that taxpayer has rectified the situation within 30 working days from date of realization of inaccurate implementation.

If the Person has been declared insolvent or bankrupt, and due taxes before the declaration of bankruptcy or insolvency were settled, unless the purpose of declaring the bankruptcy or insolvency is to evade paying such Administrative Penalties.

•Court’s decision confirming insolvency or bankruptcy.

•Explanation of insolvency or bankruptcy.

•Documentary evidences proving causes in insolvency or bankruptcy i.e. proof of loan sanctions.

•Bookkeeping/audit records indicating start of insolvency or bankruptcy.

Any other cases assessed by the Committee.

•Documentary evidence proving incapacitation of taxpayer to comply tax obligations.

•Proof that he violation has been rectified.

Other -Natural Disasters

•Confirmation of the person’s presence outside the country at the time of the disaster.

•Proof from the company that there is no other person to replace him in his tax obligations.

•Proof of the occurrence of the disaster.

•And proving its impact on his non-compliance by submitting his tax obligations.

Other -Fires

•Affidavits from Civil Defense to prove the Fire Occurrence

•Provide reasons for non-compliance

•Provide evidence to showcase that the fire location is connected to the private documents of the company

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